Correlation Between Tekla Healthcare and Doubleline Global

Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Doubleline Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tekla Healthcare and Doubleline Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tekla Healthcare Opportunities and Doubleline Global Bond, you can compare the effects of market volatilities on Tekla Healthcare and Doubleline Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tekla Healthcare with a short position of Doubleline Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Doubleline Global.

Diversification Opportunities for Tekla Healthcare and Doubleline Global

0.7

Correlation Coefficient

Tekla Healthcare  Doubleline Global

Poor diversification

The 3 months correlation between Tekla and Doubleline is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Doubleline Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Global Bond and Tekla Healthcare is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tekla Healthcare Opportunities are associated (or correlated) with Doubleline Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Global Bond has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Doubleline Global go up and down completely randomly.

Pair Corralation between Tekla Healthcare and Doubleline Global

Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 2.72 times more return on investment than Doubleline Global. However, Tekla Healthcare is 2.72 times more volatile than Doubleline Global Bond. It trades about 0.05 of its potential returns per unit of risk. Doubleline Global Bond is currently generating about -0.03 per unit of risk. If you would invest  1,648  in Tekla Healthcare Opportunities on September 20, 2024 and sell it today you would earn a total of  211.00  from holding Tekla Healthcare Opportunities or generate 12.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Tekla Healthcare Opportunities  vs.  Doubleline Global Bond

Tekla Healthcare Opp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tekla Healthcare Opportunities has generated negative risk-adjusted returns adding no value to fund investors. Even with inconsistent performance in the last few months, the Fund's technical indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the fund retail investors.

Doubleline Global Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Global Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Doubleline Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Tekla Healthcare and Doubleline Global

The main advantage of trading using opposite Tekla Healthcare and Doubleline Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Doubleline Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Doubleline Global will offset losses from the drop in Doubleline Global's long position.

The idea behind Tekla Healthcare Opportunities and Doubleline Global Bond pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.